The aerospace company announced on Saturday that it has terminated its Master Transaction Agreement (MTA) with Embraer, after the latter did not satisfy the necessary conditions. The two companies had planned to create a joint venture with Embraer's commercial jets unit and a second joint venture to develop new markets for the C-390 Millennium medium airlift and air mobility aircraft.

Under the terms of the agreement Boeing had an option to terminate the agreement until April 24.

"Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions," said Marc Allen, president of Embraer Partnership & Group Operations. "It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues."

Boeing and Embraer had already received approval from regulatory authorities for the planned partnership, with the exception of the European Commission.

In response Embraer lashed out at Boeing asserting it “wrongfully terminated” the agreement, that it has manufactured “false claims” to find a way out of the transaction and pay Embraer the $4.2 billion purchase price.

"We believe Boeing has engaged in a systematic pattern of delay and repeated violations of the MTA, because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems,” Embraer said in a statement.

Adding to its woes, a few of Boeing’s customers have in recent weeks cancelled orders of its grounded 737 MAX jets. The aerospace company, which has seen shares plunging more than 60% this year, dipped another 6.4% on Friday closing at $128.98. Embraer dropped 13% to $5.82.